Does PIA have this much cash? Or the passengers to keep these flights going?
When you take plane on lease the cost of purchase is reduced greatly however this plane pays for itself
Example Cost of the plane is $400,000,000 Million
Passenger Generated Revenue:
Capacity of plane is 800, and it makes 2 round trips per week
Lets take
1 Route Islamabad - New York @$1500 USD (Economy Class)
$2500 USD (Business Class)
Income Generated by First Class Business Class = 200 x $2500 = $500,000 USD
Income Generated By 1 Round Trip Economy Class = 600 x $1500 = $900,000 USD
Income Generated by 2 Round Trip = 2 x $1, 400,000 (1.4 Million) = 2,800,000 (2.8Million) USD
Income Generated in 1 Year by the plane/ Route (52 weeks) = $145 , 600, 000 Million
Baggage Generated Income:
Baggage Money , Pakistanis on average carry
5 Bags. If 3 bag are charged $20 each standard fee
Lets calculate extra fees generated
3 Extra Bags Fee $20 x 3 x 800 Passenger = $48,000 USD
2 Round Trips for plane = $96000 USD
52 Week schedule = $ 4992,000 (4.9 Million Dollars)
Net Income in 1 Year from Plane : $150 Million Dollars, in just three years the plane will almost pay for itself generating 396,000,000 Million USD dollars
+ Anything after that is pure profit
Note the Plane also has
"Duty Free Shop Area" which can also generate Revenue. Encourage passengers to buy small gift in flight for passengers
Note these are Direct Flights (12 hours) , not like many others that stop over in unnecessary are making your trips last 24 hours long
Extra Revenue Generation, Using the surplus flying capacity to run 2 internal routes
Note the Capacity of the plane is
15,000 km
US - Islamabad route distance is 11 ,000 KM (Main Route)
>So its possible that the plane Could make a further drop / pick up inside Pakistan
Islamabad - Lahore
(Extra Revenue Potential)
Lahore - Karachi
(Extra Revenue Potential)
Karachi - Islamabad ( Islamabad to fly back to US)
Lets Assume , it loads 200 New passengers between Islamabad - Lahore
$500 USD x 200 = $100,000 USD (No return just one way)
Lets Assume , it loads 200 New passengers between Lahore - Karachi
$500 USD x 200 = $100,000 USD (No return just one way)
Karachi - Islamabad
$500 USD x 200 = $100,000 USD (Preparation for return trip from Islamabad- USA)
52 Weeks , 2 Times week x $300,000 USD =$31Million
3 Year = 93 Million USD
Big Picture:
3 Years US - Islamabad Route = $396 Million Dollars
3 Years Islamabad - Lahore - Karachi - Islamabad = $91 Million dollars
That is just return from 1 plane imagine 10 of these working for your PIA, After 3 years the 10 planes could generate 1.8 Billion USD revenue for PIA or Pakistan/ year. This would free up PIA from any debt past 4 years mark
Not only the plane has paid for itself but it is now generating revenue
10 , of these Magnificent planes could certainly return PIA to their rightful economy goals considering how much revenue they can generate for company on Long routes and combined with local trips in one Refuel
10 Year plane , with 10 A380 operational, 10 planes are purchased by Financing by PIA thru Bank, government helps with financing of 10 planes
Year 1 : Each of 10 planes is paying for itself (No Gain but customer happiness)
Year 2 : Each of 10 planes is paying for itself (No Gain but customer happiness)
Year 3 : Each of 10 planes is paying for itself (No Gain but customer happiness)
Year 4 : You generate 1.8 Billion Profit (Election Year good to show profit)
Year 5 : You generate 1.8 Billion Profit
Year 6 : You generate 1.8 Billion Profit
Year 7 : You generate 1.8 Billion Profit
Year 8 : You get 1.8 Billion Profit (2 Billion given to Pakistan Treasury)
Year 9 : You generate 1.8 Billion profit
Year 10: You generate 1.8 Billion profit
Year 11: You generate 1.8 Billion profit (PIA would get order 5 new planes)
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PIA generates
20 Billion US Dollars in 10 years by simply being more agressive
- At the end of 8th year PIA must return 2 Billion Dollars to Government of Pakistan for past assistance.
"The government could in turn use the 2.0 Billion from PIA and invest into Pakistan Railways , and purchasing 5,000 Locomotives from General Motors for 2 Million / engine and license production of engines TOT. This would solve the issue of Second institute of Pakistan , i.e Pakistan railways with out need for IMF bail out "
So with this plan by 2020 both PIA and Pakistan Railways would be Profitable
5,000 Locomotives would fix Pakistan Railways for 30 years
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This is the income only from A380 , 10 routes
